What is your outlook for 2018 milk price?

Dairy farmers can expect a solid year of milk prices in 2018, with markets expected to make good returns, although there are factors which could negatively influence the price. I wouldn’t expect an overheated market in 2018.

What looks set to influence dairy markets in 2018?

Production in Europe, the US and New Zealand all affect milk price here. The most immediate effect on price is weather. Despite heavy rain in New Zealand, farmers there have hit the ground running and the price is good. But we also have to look at what’s happening in Europe. Milk production in France and Germany has recovered well after culling following the dairy downturn of two years ago.

The current instability in the dollar is what I see as the biggest factor in determining milk price in 2018. The dollar has weakened 15% since the start of the year.

So, in summary, New Zealand will play its game and Europe is producing more. All of this will have a more sobering effect on the price.

What does this mean for the milk price in Ireland?

What all this means for Irish farmers is a solid, if unspectacular, milk price next year. Although it is hard to indicate an exact price for next year, I believe farmers will be in for not a bad time, not a great time, where the price will be similar to the current one.

As the largest buyer of native grains in Ireland, what’s your outlook for the tillage sector?

It has been a very difficult harvest for tillage farmers. Glanbia Ireland purchases around 200,000t of native Irish grain and is the largest user of grain in Ireland. Grain prices for the current season are forecast to be similar to last year.

Given the rise in dairy, do you believe there is a future for the tillage farmer?

I believe they do have a future in Ireland despite the poor returns. But it’s hard to tell that to a grain farmer right now. But just look at the number of distilleries being built. Also there is a growing trend where certain consumers want traceable, non-GM foods. There is an expectation that butter going into Germany in two or three years’ time will be non-GMO. For Irish food companies to be able to operate in this space, a domestic grain sector is critical. Around 40% of our grain is going into high-end premium markets today.

Title: CEO, Glanbia Ireland

Milk processed: 2.5bn litres

Turnover: €1.5bn

Number of employees: 1,800

Planned investment by 2020: €250-300m

Native grain purchases: 200,000t